Global Silicon Carbide Market to Witness High Growth at a CAGR of 15%

Growing demand for steel processing and steel manufacturing along with recycling units is a key factor expected to drive silicon carbide market over the next five years. Increasing applications in major end-use industries including aerospace and aviation, electronics and semiconductor, steel and energy, military and defence, and medical and healthcare is anticipated to augment global silicon carbide market growth in near future.

Silicon Carbide is a synthetically manufactured chemical compound of silicon and carbon. It is strong, oxidation resistant, thermal shock resistant, and chemical resistant. It is characterized by low density, low thermal expansion and high temperature strength. Hexa Research observes that these factors will contribute to the global silicon carbide market as a result of strong demand from steel and energy sectors.

Silicon carbide's applications include aerospace & aviation, electronics & semiconductors, steel & energy, military & defense and medicine & healthcare. Steel and energy, with a total demand of 302 kilo tons, was the largest application area in 2013. Silicon carbide is used as a deoxidizing agent in steel manufacture. It is also a manufacturing component for semiconductors. Pure silicon conductors are increasingly being replaced by silicon carbide semiconductors. Hexa Research opines that growing market for steel and semiconductors will prove favorable for future demand of silicon carbide. The revival of automobile industry, especially in Asia Pacific countries like China, will also boost demand. Silicon Carbide is used as an oil additive in automobiles. Medical and Healthcare application segments will grow rapidly at a CAGR of 16.4% from 2014 to 2020. Key market growth inhibitors include high manufacturing costs and low tolerance levels.

Silicon carbide products include black, green, coated, refractory, micro grit, metallurgical and metallurgical briquettes. Key product segments of green and black will witness stagnant growth in the coming years. Applicability of black silicon carbide in ceramic, refractory and steel industries will propel market growth.

Hexa Research finds Asia Pacific with revenues more than $865 million to be the largest regional market for silicon carbide in 2013. Asia Pacific will continue its ascent with expected CAGR of 16.7% from 2014 to 2020, owing to factors like rapid industrialization and growing infrastructure projects. Exponential growth in Chinese automotive industry will also be an important contributor. Demand for Silicon Carbide in North America arose from the medical & healthcare and military & defense sectors. Hexa Research includes Dow Chemical Company, Entegris Inc., ESK-SIC Gmbh and Grindwell Norton in the list of key global industry participants.

Silicon carbide also finds application in automotive industry. Growing automotive industry in china is likely to boost the market demand in Asia Pacific region over the foreseeable future. Silicon carbide is produced synthetically and posses properties such as oxidation resistance, low density, high strength, high temperature strength, high thermal shock resistance, low thermal expansion, and good chemical resistance. These tangible properties are expected to be a major factor for the market development. Replacement of pure silicon semiconductors with silicon carbide technology semiconductors is anticipated to have positive impact on the market over the next five years. Low tolerance level coupled with high manufacturing cost due to low manufacturing volumes and yields are expected to restrain the market growth over the forecast period.